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tv   Fast Money Halftime Report  CNBC  March 31, 2016 12:00pm-1:01pm EDT

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iphone se but they're like it's this or the car and they're going for the car. >> they have more money than they know what to do with. >> yeah. we'll keep an eye on that happening later tonight. andrew thanks as always. >> thank you for havin me. >> let's send it over to noon on the east coast. >> welcome to the halftime report. why the markets might not be done rallying as a crazy quarter comes to a close. with us for the hour today, joe and josh and pete. what a three months it's been for stocks now on track for a 1% gain after falling nearly 10% in the middle of february. the question now, should you stay with the names that have worked or play for a rebound in the ones that have lagged? and that debate begins now. josh brown, you think you should play the lagereds.
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>> that's a built in part of how we invest for clients. you'll never see us top ticking whatever did the best over the last few weeks or few months. you're more likely to see us adding to what hasn't been working. >> you would be buying health care stocks, financials, discretionary, tech? >> yeah. look, the s&p is up 6.5% this week given all the issues we're dealing with. just unimaginable. that's the state of play. 15 of the last 22 days positive. again also unthinkable. but quality is probably going to continue to work this year so probably more toward pharma and devices. >> joe says go winners, why. >> i tend to look at things in a quarterly basis. where are you going to start and where are you going to end up? and beginning obviously was not very good.
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january was one of the worst months in a hundred years but we ended up okay. when i look at the second quarter i think we're going to start okay. >> you play defense. you go telecom utility staples. >> stay with what is working and the value type of names. the emerging markets are getting a lift on the lower dollar. i think we end the quarter on the defensive. >> i don't do you think we'll start out well if we get earnings i think in the guidance you'll come around to the turn in earnings and that's going to keep that going.
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some of the guidance looking forward but what will be difficult is the brexit and the conversation surrounding what the federal reserve should do. >> pete says be switzerland, go both. >> it doesn't change for me scott. nothing ever changes about how i trade. i look for growth. i look for value. i look for yields and all the different things. kevin o'leary was on here yesterday talking about the same type of names because i want the fundament fundamental story to be there and i don't want it to be a yield or buy back strategy out of the company that's financially engineered. i want to see a consistency for decades and yields and so forth. that doesn't mean that i'm not occasionally going to have -- yesterday i bought ak steel. this is a dash for trash kind of names. what started to rachet it up?
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take a look at u.s. steel and the run that had. look at gold and silver. there's places in the market we have seen that dash and incredible run. i'm not going to chase those but if something comes up on my radar, i'm going to buy a long. >> stay with what's working or switch it up? >> it's a combination of both i'm going to wait and maybe i'll nibble. earnings season is coming. there's stocks that will get cheap again but i'm not getting aggressive. >> how about the names within the dow? the best dow components over the quarter. verizon up 17%. caterpillar up 13%. so you get the gist here, maybe defensive names in a telco but cat, walmart, staple, 3m,
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industrial. >> the interesting thing is the retail names came back. a lot of the consumer discretionary names came back. the question is is that sustainable over the quarters. in the near term it is. so those are the names i would look at. >> american express one of the worst performers in the dow. down 13. yes since mid february the jamie dimon bottom as we have been calling it on this show. do we think that josh those stocks are those the ones that you're suggesting that you should start playing now as the quote, unquote, laggerts? >> we have financial exposure but i don't think there's anything to say about the type of year that any companies with wall street exposure, capital markets exposure are going to have. they're laying people off and seeing profits decline. pretty much across the board.
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there's no m&a this year. no ipos this year. literally none and what you end up with is stocks that sell at a big discount to the market but deservedly so and the investor class has come to realize these companies are basically highly regulated utilities at this point. i'd much rather be in a ge shedding it's financial assets. they asked for permission to shed the title of being financially important. they don't believe they are anymore and that's a name breaking out. >> you think it can go to 40. >> it's all happening. the stock is now leading it's '07 highs in the dust and this is an underloved, undertalked about name. they're transitioning from the types of businesses they said they would and they're getting much more toward health care, doubling down on aerospace and power systems and this is the
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type of stock that you want to own if the dollar strength continues to moderate. >> i wonder what you make of the goldman call today. no rate hikes in the first half of the year but three in the second half we think the run way, you think the run way has some length to it here but then, i'm not sure when you get later on into the year. >> you have a contentious presidential election coming up. you have a significant conversation once you get into the summer regarding the global economy itself. it gets a free pass because of all the easy monetary policy but you're going to get some traction and growth going forward whether it's in europe or whether it is in the emerging markets. >> does have the fed have the guts to go after it and do this as you get past september into
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the election? >> it would have to be after the elections and once you see that. >> what are you going to have? three hikes between november and the end of the year? >> i don't agree with the three. if you want to go after the thesis of buying banks you do it now. you don't buy it when you think they'll be doing it do you like the miners? >> for trade and when it finally flipped and we saw the huge run in oil and copper and gold that's a triple header. >> 30% shorts too. >> so people that stayed short were total pigs. >> i think these are true trades in the marketplace but these names are leveraged and when you look at where the commodities are now that will change rapidly. >> i don't think anyone should make the mistake that the key
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indicators are going to be any different in the second quarter and that's a problem where is the dollar going to be? it started to peak 22, 23. the vix is now 13, 14. you're trying to answer the same questions. >> it's going to be higher at the end of the next quarter. >> that's the problem. >> could april showers bring more to the markets? we're joined now with the answers. >> april maybe for the bulls here. according to our data partners april has been bias toward the upside in a big way. over the last decade the dow industrials have not once posted a losing month and on average the gain for the dow down nearly 3% as you can see there. meanwhile the s&p 50 positive 9
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of the last 10 aprils and the nasdaq 7 of the last 10. both of those guys post average gains of around 2.5%. that's the medium long-term. if you look even longer than 10 years out the same type of story gets told according to s&p global market intelligence since 1945 april has been a positive month for the s&p. the second most positive behind december's 76% positive batting average. of course the usual caveats apply but a little historical context for your trading pleasure. speaks to the point there about starting off the second quarter strong. maybe a little bit wary in the second half of that quarter. >> gold had the best quarter in 30 years. are we going to see a complete reversal. >> i think you hold on to goal.
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the federal reserve long argued they want an up tick in inflation and they're not getting 70s style inflation but they want the up tick in inflation. they get a little bit of it and then they tell you we're skeptical that it's sustainable. to me, in your portfolio seek longer term inflation. have some inflation protection looking forward. >> you want to buy gold up 17%? >> no. i don't think you need it for inflation protection. historically they do a better job and stocks do a better job as well. gold is a commodity. it's prone to huge booms and even bigger busts. you can trade it. i just don't think it's necessary. >> it is a trade. >> a trade over though. >> i still think is 22 in the cards? so we're close so i think
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there's certain levels i'm talking about gdx in terms of 22. i don't know how long that can continue to last but that's why i have been trimming into it. i was out very rapidly but in terms of the gdx i'm going to hold it longer but not much. >> you run a longer dated portfolio. do you own gold now? >> we don't own any gold. inflation right now, not in the short-term, i don't see it. a lot of people using gold as a hedge we elections coming on certainty it's the thing to do and cover your portfolio. it's like a portfolio hedge but longer term i wouldn't. >> here's what's coming up on the halftime report. >> still ahead, 7 halftime traders battling for the title, trader of the year. >> can't have anyone freak out out there, okay? we got to keep our composure. >> as the first quarter winds down. we're taking stock of who's winning, who's losing and who is trying to make up for lost time in the halftime portfolio. plus, missing the mark. >> i'm not supposed to lose.
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>> is it time to sell target? our experts debate the call of the day. and it's been a rough ride for hedge funds. are the masters of the universe making a come back as stocks rally? we'll get the inside scoop. it's all coming up on the halftime report. at mfs investment management, we believe in the power of active management. we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management. frank abagnale. convicted felon and con man. that was a long time ago. you know, they made a movie about it. you were shown to be quite skilled at fraud. times change. now i help catch the bad guys. me too. i help banks detect fraud by applying cognitive analytics
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to public financial records and social media. so if somebody said, "catch me if you can...?" we can. let's do a sequel. it could be a buddy movie. i would like to have a buddy. woman:man: yes.a newspaper? woman: it's quaint. man: did you read about this latest cyber attack? woman: yeah, i read it on my watch. man: funny. woman: they took out the whole network. man: they had to hand out pens and paper. woman: yeah. man: could it happen to us? woman: no. we're okay. man: we are?
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woman: yeah, we brought in some new guys. man: what do they know that we don't? woman: that you can't run a country with pens and paper. it's not just security. it's defense. bae systems. welcome back to the halftime report. target right there is down 1.5%. under pressure as barclays downgraded that stock today as a
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sell. it is our call of the day and to say it's got jim cramer a little fired up this morning would be an understatement. >> brian cornell delivered a remarkable quarter in any of the fastest growing of any of the onlines including amazon and the quarter was remarkable and this guy comes out and puts a sell on it and i think you're going to look back and say wow that was a really bad call. >> he said you make a call like this if you know something and this guy knows nothing and you're going to look back and say that this analyst give you a gift to buy the stock here. agree or disagree. >> i don't know why you put a sell on this. the stock had an incredible move since the end of january when it was a $67 stock forget about
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replacing it. is it a sell or a no? >> most of us would agree that's not the type of chart or fundamentals that have been delivered here over the last quarter that you want to sell that stock. >> lower sales out tps look drives the call. >> i don't understand the call. i don't own the stock. and it came in with this call before and whoever wanted to get out. very small number of people brought it all the way back up and this is the kind of name where if it doesn't rollover on this downgrade and takes out $84 you want to be long. that's a huge break out getting above last summer's highs so from a risk reward standpoint let's see if it can shake it
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off. >> i'm on the side with jim cramer. i think it's ludicrous. the guy was $90 and moves to $70. why? when you have digital sales at 34% it's equal to amazon. it seems absolutely nuts to me. i don't understand anything about it. brian cornell has done every single thing right this whole way. the stock went all the way down. forget the top of the year. how about a year and a half ago when it was down under 50 and all the insiders came in and bought. we said insiders have come in very much like steve wynn did and started buying up the stock and then you get brian cornell to come in here and have the turnaround they have seen so far. the stock does not trade expensive. it trades at a 14 times earnings. they give you a 2.7% yield and shrunk by 33% in the last decade. management is unbelievable and that's what makes them so strong
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in this environment so it's $15 to the down side this is a stock that if it gets to 90 more than likely it gets to 100. it goes to 100 before it goes down to 67. >> trades on four stocks making news today. first up micron is lower after missing on its revenue. joe you have been bearish on the name for awhile. >> i have been and i don't want to buy it. you have a lot of analysts that will downgrade it and lower the price targets and make it a single digit name. the problem is the lack of pricing and more importantly the continued inventory builds. >> if you have been trapped in this thing they would give you a huge favor.
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i would take whatever call you get and sell it. >> ibm with a vote of confidence and the firm raising it's price target. $168. >> ibm is a turn around and i have been following this now for a couple of years. we never bought it but it's getting really interesting. they're really transitioning their business. that's all higher margin growth. i think this stock could do well for the next couple of years. >> mcdonald's planning to add more than a thousand restaurants in china. stock is up today. >> one more boost to a great company and here's a guy that came in. they have done an amazing job. not just about the all daybreak fast but trying to figure out ways to make it easier on the franchises. obviously the all daybreak fast isn't doing that right now because that makes it tougher but they're trying to reduce the menu and we talked about how it's sized. if they can reduce that down and speed up the drive-thrus and the big growth in china that's nothing. that's just the beginning. >> coming up, gasoline futures are up more than 60% from the february lows.
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when will the price surge start causing pain at the pump? we'll hit the futures pitts for answers. plus tesla unveiling the new model 3 tonight. at least one analyst says the new car should be a game changer for the company. okay. we'll debate it when the halftime report comes back. some say "free the whales." for them, nothing else is acceptable. but nothing could be worse for the whales. most of the orcas at seaworld were born here. sending them into the wild wouldn't be noble. it could be fatal. when they freed keiko, the killer whale of movie fame, the effort was a failure and he perished. but we also understand that times have changed. today, people are concerned about the world's largest animals like never before. so we too must change.
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>> dow heat map today. 17,00 17, 753. the dow going for its fifth straight day of gains. that's american express, mcdonald, microsoft and home depot. the cheapest quarterly gas prices in 12 years and bertha has the futures now crew. >> thanks, scott. yeah, we see the implied demand for gasoline as a result of the prices over 10% in the last few weeks and we have seen gasoline out perform in the energy sector.
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it's up 14% year to date. >> but they were giving it away. it's still down 2-thirds. but the one thing i think is interesting is tuesday may have culminated this shift from thinking about a hawkish fed to now a neutral fed so the dollar's weakness might have a little more difficult time continue so we're not shifting to them easing now. so i think that any continued strength is going to be more difficult. >> what do you think jeff? what levels are you watching right now when it comes to the contract? >> well, i'm not going to disagree with my friend. he highlights the fact that there's resistance here. 150 on the chart. you can see the sensational drive but look at 128. that's a support level and americans are going to drive 3.2 trillion miles this year.
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i'm going to fill up my tank and take that additional trip. it's a live show at 1:00 on few urs now on cnbc and we'll talk about this incredible rebound in stocks and what that could mean as we look ahead in the second quarter with the investment group co-founder. be sure to join us now at futures at the top of the hour. we'll be live. >> great guests and we'll be there as well. coming up, the thrill of victory and the agony of defeat. a check on who is dominating the halftime portfolio competition and who has work to do as the first quarter comes to a close. as we head to break, let's look at the heat map today.
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much as it did in the quarter, health care, well, health care lagged. it up today. there's tech getting a nice boost as well. discretionary, having a pretty good day too. s&p is up almost 4. we're back after this. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. doing small gigs,side gigs...gig gigs. quickbooks self-employed helps me get ready for tax time. to separate expenses,i just swipe. it's one hat i don't mind wearing.
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hello, everyone. here is your cnbc news update for this hour. the paris attack suspect should be extradited to france. his lawyer says he wants to cooperate with french authorities. he refused to say how long it would take for him to be transferred to france. iraq's powerful muslim cleric telling supporters to end a sit in in baghdad after the prime minister presented a new cabinet. thousands of his supporters were protesting outside the green zone calling for political reform. apple's new iphone went on sale across japan today. the smaller phone retails for less than $500. japan is one of apple's biggest market. and goalie hope solo and four
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other players filed a federal wage complaint. they generate more income but are paid much less than their male counter parts. the soccer federation says it is disappointed by the move. that is the cnbc news update this hour. now over to kayla at the new york stock exchange with a news alert. >> hi, the news alert pertains to a speech whose covers are just being taken the wraps off it. the seminar is called new directions in regulation and that pertains to how the occ plans to regulate financial technologies. in these remarks as well as a white paper that accompanied the remarks the occ is seeking public comments on how exactly to regulate the sector. saying the rise of fintech poses risks for the banks. when some innovative products
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such as sub prime mortgages were used in ways that had disastrous consequences for individuals, communities, and our economy, we want to be sure that the banks we supervise innovate in a way compatible with safety and soundness consistent with consumer protections, laws, and regulations. they're saying this pertains to the banks and thrifts that the occ supervise. those are chartered banks. that's not payment companies like paypal, like the credit card companies. so this could potentially further drive a wedge between these quicker, more profitable technologies that are operating in this unregulated grey area and the heavily regulated banking industry. we will see what the public comments say but of course it also comes on a day when citi put out this report about how banking is right for an uber moment where up to 30% of jobs could be cut and replaced by technology so we're in a braver
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world and it's interesting to see them specifically talk about regulating financial technology in the banking industry. >> kayla, thanks so much. a brave new world as kayla says and in some cases the same old world that the banks have been in. one of increased regulation and those looking over the banks shoulder. if you're an investor, what do you think about the news? >> same news. same news the last couple of years. a lot of rhetoric and reality over the next coming years. what has gone on in terms of rebuilding their balance sheets. that will ultimately be beneficial if you have financial institutions on your radar that you want to own, i don't think this deters you from buying them. >> it's the same head winds. we're talking about them being looked at as utilities. nobody in washington is going to give these guys a good pass. but longer term this is more of the same. >> coming up, one leg of the halftime portfolio race done as the quarter comes to a close today. we're breaking down the best and
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worst trades so far and how the traders are planning to attack the next quarter. plus tesla's model 3 debuts tonight. the stock is already up more than 20% this month. should you bet on the rally to continue? we'll debate it. the halftime report after this.
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>> great moments are born from great opportunity. >> i don't want to be dependent on the economy having to pick up for my stocks to work. >> everybody gets one chance to do something great. >> this is a trading game this year. >> you may make it. you may not. >> pete is going to trade more. speed pete is going to win. >> you have to play tougher off the boards. >> 70% of the economy is where the money is going to be. >> we have the opportunity to play like gods.
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>> this year i will be more active and i will be trading more. >> you want at a act like a star you better give me a star effort. >> i have been taking capital losses for tax purposes. >> they look in your eyes they have to believe. >> this is a stock portfolio that's only going to last for one year so you have to look for catalysts. >> chick digs scars. glory lasts forever. >> one down and three to go. it's the final day in the first quarter. i want to show you the leader board and where things currently stand. jim is in first place.
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>> joe, you have been the most active trader. 87 trades through the first three months. your best trade made you about $5,600 in the play money terms that we talk about. you have facebook, pioneer and palo alto. stick with what's worked or what? >> i'm sticking with what has worked. that's my plan. it's going to be a little bit tougher in the second quarter to do some of the things that i did. not going to have the benefit of a lot of the energy names, which i was able to catch the recovery in early february. you mentioned the 87 trades. a lot of that was taking one position and selling it out in 20% increments over the courses of it rallying but it's going to be more difficult for me in the second quarter to try to find trading opportunities. i'm not necessarily sure that they're going to present themselves as they have in the first quarter. especially in energy. >> okay. i don't know if this is a rookie thing or what but you have been the least active trader
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obviously you have been hanging out with pete. >> he's doing well. >> three trades. >> actually four because you have to sell and buy. >> macy's is up to 26% or something like that. >> in the quarter and i want to take it off the table and buy serna. they had a bad quarter but they said for the next ten years they're going to grow their revenue 10%. this is a area with a lot of growth and runway and only two players in this field. >> pete, twitter is the worst trade. >> widow maker. >> for you. >> grave digger. >> we're betting on a rebound.
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do you stay with it because you think that's going to happen? >> i no longer have twitter. >> you no longer have twitter. >> i bailed on it awhile ago but it is my most costly. that was one of the mistakes. i was looking at what separated everybody out is each one of these guys, you had macy's and orbcom, when you look at the great performance and great picks by those guys my problem is i haven't had the great pick but the worst pick and the worst pick being twitter and that's the weight. that's why i find myself in negative territory. >> your top trend is armstrong worldwide which you do still hold. >> right. i have some gdx exposure in there which i believe. unless that was sold out of too. i can't recall off the top of my head but there's some trades. joe made a good point. i do need to be more active than i have been and i have already been more active in the first quarter than all of last year so i am more active right now. >> so there's hope then perhaps too.
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so josh you won last year and now you find yourself in last place your top trade mccormick. your bottom trade orbital atk. what do you do now? >> i have been working through some personal problems this year and i was hoping not to bring those out on to the field with me. but you know how these go. still early scott, still have three quarters of the year left and i'm not changing much. one thing i probably could have done a better job with is trade more frequently. >> i'd say that was toward the bottom or at least maybe in the middle. >> what's different from this year and last year, last year we were limited and this year we do what we need to do, unlimited trades so i'll tighten up my risk management. i'm not going to let things move down. i'm going to tighten that up to a 50 day moving average but use weekly closes so there's not too
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much noise and if i had done that in q-1 i probably could have avoided two nasty losses hard to come back from. i am on the road to recovery. i cut my loss in half in just the last couple of weeks. mostly thanks to the market. hopefully that keeps coming. >> john is on the phone with us as well. you made a trade today. you find yourself, what, in third place? is that where you are? >> yeah. happy with the overall with the performance. >> up 12%. >> i'll take it. i'd think anybody would be happy there. >> what's interesting is that none of your current holdings are either your best or your worst. your bottom was office depot. you are out. you currently have community health, book, amazon and ebay. you made a ton of trades like
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joe has as well. 76 of them and today the you're selling facebook and you bought marathon so tell us why you're doing this now? >> well, facebook, we bought it on a break out but they were weekly calls last week that they were purchasing. so that i think has played out. i'm not saying facebook is done but again i'm trying to take bite sized pieces, judge. hit singles if you will. so that worked out. took off facebook today and put marathon in because i saw somebody out in selling and buying. that's a bullish debt that the stock goes higher and pushes through 12. i think if it does that which is only a buck higher than where it is now, there's nothing but air up to about 15 because i think this thing breaks out just over $11 a share where it is so this could be i'm swinging for the fence a little bit with this
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one. >> all right. thanks. we'll see you back here on the set. >> thank you guys. you can follow the action at coming up are hedge funds bouncing back. one insider joins us with the latest on how the smart money is performing after what you know has been a tough start to 2016 for that group. that's next on the halftime report. t the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
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>> apple and chipotle. we debate them all. the last time we had the money manager on in november he gave us a small cap pick. it's up 14% since then and up 30% since the beginning of february. he's back with two more names and this is going to cause out rage. there's a radical plan by washington d.c. to pay criminals up to $1,000 a month not to kill anyone. you have to tune into this. is that the proper use of a financial incentive? we discuss. scott back to you. >> i can't wait to see that segment. thanks. we'll see you in about ten minutes. hedge funds had a rocky start to the year but as stocks bounce back is the smart money rebounding as well? our next guest is talking to hedge fund managers and
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investors to find out. let's bring him in and was it getting any better. >> hedge funds are are going to end up about negative 1.5 to negative 2. they have rallied a lot in marchand started off really bad. it's been a roller coaster. anything with a lot of equity exposure or high yield got killed. those are the strategies doing really well in march. >> headline in the journal, today or yesterday, investors pull cash from hedge funds as returns lag market mention funds, insurers pulling their money and looking for other strategies. is that going to continue or are they going to come back as the performance improves? >> that's overblown. it's a hedge fund data base. they came out and said there's about 15 billing that came out
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of hedge funds during the first two months of the year have seen information that said flows in march looked good. a study said the average hedge funds so i think a sits are actually a lot more stable than what that article said they were. >> one of the most interesting things you found is in march, best performing strategies and that tracks in the way that the market has obviously had a great comeback, as well. >> yeah. i mean, hedge funds have a lot of beta in them. distressed debt has come back a lot. i think you see good numbers of activists. long short equity up 2.5% so far this month which is making up half the gains. they're still down 1.5%, not a good quarter. you have had a lot of dispersion of managers. i think there's going to be -- >> there's conversation of whether activism in general has peaked. or, did peak in the latter part
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of last year. you buy that? >> i do buy it. you know, i think a lot of money has flown into act riss. you have about 130 billion in strategy right now. a lot of low-hanging fruit is gone. finding companies massive amount of cash on the books and paying a big dividend or buy back stocks doesn't exist anymore. so i think they still can do okay but they're not going to generate the same numbers of five or ten years ago. >> interesting. >> your statement, don, hedge funds with beta in them right now, i have seen work from goldman sachs group and other that is show the amount of beta within the hedge fund industry grows consistently every year. why pay a performance fee on beta? >> well, you know, i think you necessarily should pay a performance fee on beta. there's different strategies and those gaining assets over past four or five months have been strategies that don't have a lot of beta, not core lated to the market, direct lending, ctas, market neutral equity.
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if you invest in those strategies, they do a good job. they deserve the fees. >> all right. good to see you. thank you for coming in. >> my pleasure. >> all right. after the break, not so fast, josh brown. the chip stocks surge that he missed out on.
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pre-orders. i don't know what the execution will be. that seems to be the big question here. no one denies a popular product. and then the bigger issue on the horizon is, continuing to finance what they're doing. and competition from the majors. and that keeps me on the sideline. i want to see elon succeed. i love the company. i don't want to be involved in the stock. >> we spoke to adam jonas a couple of weeks ago, top-rated analyst morgan stanley on the group. he cut down the price target. here's what he told us on march 11th about tesla stock. >> one of the changes was very significant decline over many months in oil price. and we have long held that tesla is a -- sits at the intersection of tech, energy and capital markets openness and if we have a lower commodity prices which hurt the payback of electric cars categorically -- >> how does that factor what jonas is talking about and then the new model amid, you know,
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questions of supply and demand? >> the key of josh talking about, there's huge demand. the lines i think are not fake lines. real lines. apple, quite frankly. people want the product. the problem is can they execute and produce? will that be able to happen? i think the other thing is, main factor is, look at the stock tesla compared to the price of oil and it's pretty interesting comparison. right? i mean, look at where it was when oil was at the lows in the market. talking about $26 to $27 a barrel oil and thousand 1now 180s. >> down 4% year to date. that's what tesla is, year to date. >> a couple of years ago i made the argument of a correlation of crude oil and tesla and i do believe there is and pete is correct. only thing of what's coming up is it really is binary. has anyone seen the design in
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what's the mileage going to be? without that knowledge, i don't know if you can make an informed decision, especially regarding a stock that's rallied so significantly. >> talk about a stock that's rallied significantly, as well, qualcomm. josh made a bearish call on qualcomm based on technical and legal issues. >> it's the worst of the chip stocks and most of them look pretty bad. technically this thing is off a cliff and the market for smartphones is just really, really saturated. plus they're tied up with, like, legal issues with lg. like what else to add to the pile? if you're a value investor, an activist, this is still a prime candidate. >> i'm glad you brought that up. i think our boy fancies himself a value player add third degree to his portfolio, didn't he? >> good news, jimmy. even more value. >> up 17% since then. it was a good value play. >> no. not really. this stock is still going lower. i'm still right. lydia, thank you. a chance to update people why
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they shouldn't be in it. >> you can tell him. he's in it. >> you will be for a long time. this is a stock that put in the top in january 2014. now more than two years it's been selling off pretty much every month. i don't dislike the company. this is the stock. the stock is for sale on every rally. this one included. it is about to roll over once again. earnings per share growth is negative. revenue is negative. every category is increasingly commodity if ied and until this thing can break down the down trend, i don't want to be involved with it. it has a lot of cash. a great long-term franchise. there will be a better opportunity in my opinion to get in and the recent pop with the overall market is not it. >> you have 20 seconds to rebut that. >> whatever you said -- >> great show today, guys, by the way. >> that's right but there's a catalyst because you have activists in there, people looking in there. they're really focused. >> fair. i'll buy it then. >> it might pop before that happens.
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>> you said everything he said was right. >> but you can't buy a stock when it pops. >> the stock is -- will reflect the value when the activists split -- >> wishful thinking. >> we'll see you tomorrow. thank you for watching. "power" starts now. that, folks, is the wake-up call. three big name, big stock stories developing within a 24-hour period. this is not "60 minutes." this is "power lunch." welcome, everybody. all three companies should be on your radar. with michelle, melissa and brian, i'm tyler. tesla unveiling an a little ela. chipotle may go back to look to the roots in burgers. beginning with apple as


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